The U.S. digital asset investment market lost more than $32 million last week, the largest outflow of funds since December 2022, according to CoinShares, one of Europe’s largest crypto asset management firms. Considering that between February 6 and 12, the decline amounted to another $62 million, over a two-week period, crypto investors withdrew almost $100 million.
CoinShares experts reported that bitcoin took the brunt of the negative sentiment of crypto investors last week. The closing of investment positions in the BTC amounted to almost $25 million, while the influx of short-term investment products based on bitcoin did not exceed $4 million.
Negative sentiment among U.S. ETP investors did not affect the global market as the price of bitcoin rose by 10% in a week. Moreover, as a result of the upward BTC rally, total assets under management reached $30 billion, the highest since August 2022.
Commenting on the situation in the US market, CoinShares analyst James Butterfill said that the main reason for the outflow of funds is the change in investor sentiment after the enforcement actions of regulatory authorities against the Kraken exchange and the issuer of stablecoins Paxos.
Source: Bits
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